Judy Marks: Yes. I mean India — yes, India — Gautam, thanks. India is the highest growth market anywhere in the world. It’s the Number Two new equipment market globally after China, but it’s got different attributes than China because the conversion rates look far more like mature markets like the Americas, like EMEA. We’ve been doing — we installed our first unit in India in the 1890. So — and we’ve had an operating company in India for a long time, we’ve got a great presence there. I really like our position there. We got a factor there, so we have Made in India product across elevators and public and commercial escalators. The growth we’re seeing is really in every area, but infrastructure is moving very rapidly. Obviously, large population – that population, the rising middle class is driving not just urbanization, but demand for higher-end residential, especially multi-family, so — and multi-use.
So every vertical in India is growing, and we see that market growing double digit, and we are investing in it. We are investing in it in terms of adding colleagues and field colleagues. We’ve got them all over the country. Obviously, our factory is driving significant production increases quarter-over-quarter. Our supply chain continues to focus on local and developing more of that local supply chain. It is competitive. And we have to hit some competitive cost points, but our team has managed through that extremely effectively. But think of it as more — even though, it’s a high-growth market, more of a mature market, where you don’t have this thousands of ISPs, you have this ability to convert at the 90-plus level like a mature market, so our Service portfolio grows there as well.
And we have a really strong team under [SEBI’s] (ph) leadership in India that understands how to do business in India, do it well, do it right and quarter-after-quarter has just proven significant growth. We are very, very bullish on India, and we’ll continue to invest there.
Gautam Khanna: Thank you. That’s helpful. And I just wondered if you could also just talk about supply chain generally. Where, if any constraints still exist, and how your own lead times have changed over the last three months? Thanks.
Judy Marks: Yes. We — the good news is we’ve worked through the majority of any of our supply chain issues. From a comfort perspective for you on commodities, we expect this year after last year, we drove about $44 million, $45 million of savings on commodities. This year, we are looking at $15 million to $20 million, we think we can get that on top of last year’s. And the only reason I say $15 million to $20 million instead of $20 million is we’ve seen steel increase in certain parts of the world. But we are locked in terms of our commodities for the rest of this year from a productivity and a cost standpoint, fairly well 60% locked, 80% on steel, our magnets are fully locked. So our supply chain team has done a great job through the challenges and now is optimizing.
So it’s not impacting deliveries at all. And really, there is no single call out. Are there still some people that are recovering some smaller suppliers there are – we have continue to focus on dual sourcing, resiliency in our supply chain. And I got to tell you, our factories on New Equipment this first quarter they delivered.
Gautam Khanna: Thank you.
Operator: This concludes the question-and-answer session. I will turn the call to Judy for closing remarks.
Judy Marks: Thank you, Sarah. We are quite pleased with our first quarter results as we make steady progress delivering value for our customers and shareholders throughout the remainder of the year and beyond. Everyone, thank you for joining us. Stay safe and well. Goodbye.
Operator: This concludes today’s conference call. Thank you for joining. You may now disconnect.
